Commercial Law Notes (Grade A)

Summary:

In the comprehensive note by Munachi Chukwu, a law student from Imo State University in Nigeria, various types of contracts under the Sales of Goods Act 1893 & 1979 are explored in detail. The Contract of Sales is a focal point, defined as an agreement where a seller transfers or agrees to transfer goods to a buyer for money. In contrast, a Contract of Gift involves the gratuitous transfer of property without any consideration. The Contract of Hire Purchase resembles a sales contract but is initially a bailment of goods with an option to purchase, finalized only when the option is exercised. A Contract of Exchange diverges from a sales contract in that it doesn’t involve money but rather operates through barter. The note also delves into Bailment, where goods are temporarily handed over but ownership isn’t transferred. The act of leasing is explained as a temporary contract where the lessee pays for the right to use an item but does not own it, unlike a sale where ownership is transferred. Various case laws such as Foresyth v Jervis, Aldridge v Johnson, and Chapman Bros v Verco Bros and Co. Ltd are cited to offer judicial perspectives. The note further touches upon unique cases like ESSO PETROLEUM LTD V COMMISSIONER OF CUSTOMS AND EXCISE to illustrate that some transactions don’t neatly fit into conventional contract categories.

Excerpt:

Commercial Law Notes

COMMERCIAL LAW NOTE:
COMMERCIAL LAW NOTES ON DIFFERENCES BETWEEN CONTRACT OF SALES AND OTHER CONTRACT RECOGNISED BY THE SALES OF GOODS ACT 1893 & 1979

CONTRACT OF SALES
CONTRACT OF GIFT
CONTRACT OF HIRE PURCHASE
CONTRACT OF EXCHANGE
CONTRACT OF BAILMENT
CONTRACT LIASING

DEFINITION;

Section 1(1) of the sales of goods act, 1893 defines a contract of sales goods as;

A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price.

This means that, in addition to the ordinary elements of acontract, two other elements which are goods and consideration must be present in a contract of sales of goods.